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tv   Real Money With Ali Velshi  Al Jazeera  July 4, 2014 7:00pm-8:01pm EDT

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exciting. i think we will remember it as an exciting world cup. >> deandre yedlin. "real money" is coming up next. >> a live look where the fireworks are set to begin later tonight. have a great fourth. >> pass the american dream - a good job, a home for the family, a better future for the kids. tonight - hardworking families left goodnight, and what can be done to help. i'll show you how the face of the middle class has changed in a proud american city, and how those in the middle banded together to help revitalize another city. plus, where in middle class families, where they are finding affordable homes, all part of our indepth coverage of the middle class - rebuilding the
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dream. i'm ali velshi, and this is "real money." [ ♪ music ] this is "real money," you are the most important part of the show. tell me what's on your mind by tweeting me or hit me up on facebook. most americans agree the middle class is in crisis. squeezed by years of job lose, rising costs and stagnant wages, 40% of americans say they belong to the middle class, down by 53% in 2008, when the recession hit. there is no accepted definition of what the middle class is, economists define it by income. we define america's middle class as households with incomes of anywhere between 40 and $100,000, based on analysis. that encompasses middle income families with similar dreams and
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pierations, securing a job, home, health care - add to that time off for vacations and the ability to save enough for retirement. they are becoming harder to achieve. median household income in the united states was $53,171 a year in 2012 - that's the most recent year for which we have data. half of all households earn more, half less. this number is 7% lower than it was in 2008, when the recession hit. adjusted for inflation, median household income in 2012 is no higher than it was in 1995. basically a set back of 17 years. now, the median number is problematic. is it doesn't take into account the geographical differences when it comes to cost of living. focussing on income doesn't take into account how the middle
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class behaves. we are confident in the definition. rebuilding the dream is important. the most important part of a robust economy is the middle class. spending by the middle class creates strong consumer demand and desperately-needed tax revenue. america's economy will faulter without it. it today said middle class is under pressure, and our goal is to shine a light and look for solutions. we have introduced you to people like yourselves, people with real-world pressures in daily lives and following their progress over the course of the year. people like the williams family of illanois. the bolin family of tennessee, and sabinos of new york. [ ♪ music ] with one home, two kids and pets, bill and diane sabino seemed to have it all. >> i heard that song before.
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>> it'll get done. >> right. >> the long island new york couple says what they have are severe money problems that are seriously affecting their marriage. >> our counsellor told us couples will get divorced quicker over finances than if someone strayed and had an affair. >> i'm very worried because you don't know what will happen next. >> did you see the other two? >> they are this bad. despite a combined income of over $100,000, cara and steffen are in debt. they want to move from the chicago suburbs to an affordable area, but their house is under water, like 9 million others. >> to get out of the foreclosure process we had to pull the retirement fund, the entire thing. i cried, i cried, i cried a lot. it's my american nightmare.
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>> how was your day? >> good. >> jody bowlen is the single mother of a teenage mum. >> i'm not restocking the store. i'm close n on the 24th. >> she's a struggling small business owner. in an attempt to stay afloat. she is rebuilding her dream by moving her store to a location. >> i'm on a mission that i have to keep the business going. getting the new store up and running, the details are overwhelming. the stakes are so high that i think that honestly, i've been afraid to realise how high they are. the stories of these families are not isolated. they illustrate disturbing trends in the american middle class, the conclusion made by sociology professor kevin light. he's the author of middle class meltdown in america - causes, consequences and remedies. after years of research on class
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inequality here is what he told us about our three families, and the american middle class. >> what the families show is we have lost the narrative for how to get a head. having a job and working hard and having a mortgage and trying to make payments on it, and trying to send your children to school is now becoming more difficult by the day. >> is there one culprit to this, or is it a combination of things? >> it's really a pretty complex combination of things. i mean, you have globalisation that has brought to our shores very cheap goods and very cheap services provided by very educated and industrious people from other parts of the world. you have american political decisions favouring unincomed and the wealthy over earned income that middle class people make. that had something to do with it. you have financial deregulation that allowed us to loan money to people that we used to pay them,
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so you could get credit cards with no proof of income. you can buy cars with no money down. you used to by houses with no money down. we made it easy to consume things and get into debt. we replaced earnings from a job with debt as a way of financing middle class life-styles. >> we got news that panera bread finds so many errors when people go to check out the food that they are in many stores adding automatic kiosks thinking it will reduce the error rate. wouldn't the problem be to train people better. technology is part of the culprit here too. >> yes, technology is part of the culprit here. although we probably can't go back to not having technology. it has become so efficient that a lot of middle manager jobs that used to exist, that involve passing information from one office to the next are now gone.
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a lot of other jobs have been affected by technology, including the checkout people. >> let's talk about the wide-proceed effectiveness, there's an effect whether you are in the middle class or not to a gipdling middle -- dwindling middle class. if you hollow out the middle class we'll all suffer. >> yes, we will. the consumption. middle class drives the economy. one way or another the middle class has to consume things, by durable things like washing machines, cars and stereos, and buy services. those are the way the rest of us need money, and the rest of us make money and profit. without that the entire economy goes downhill. >> you mentioned borrowing. what are some of the orthodox ways that all the families we
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are talking to are struggling in some fashion, so they have to think about ways to borrow. what are the unorthodox ways of people borrowing as they struggle in the middle class? >> there's a lot. one of the key ways of borrowing is borrowing against the equity in their house. it's fine when the housing prices went up. but when housing prices collapsed a lot of people ended up under water. people would buy houses. when one of the pair lost a job, the man or the woman, they'd find unorthodox ways to make the payment. putting them on credit cards or cash out the savings or retirement account in order to keep the house. we have seen a mainstreaming of things like pay day loans and pawn shops which you see in the suburban parts of the united
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states, things that you used to see it downtown areas and seedy neighbourhoods. there's ways for the middle class to borrow money and get in trouble that didn't used to exist. >> you heard the williams family, one of the families said that they had to tap into the retirement. and we heard that from other families. i hope you stay part of the conversation over the course of the year as we under more about the flight of middle class. ken light a professor and chair at the department of sociology. middle class doesn't mean what it used to in philadelphia, i paid the streets of that gritty city a visit for a look at what changed and what stayed the statement. >> app old school -- an old school barber shop, mexican, and what else... >> a cigar shop. >> does this work? >> make sure you get that one. >> we got it. >> all right. >> clearly he doesn't mind the new philly. more from south philly coming
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up, and how the middle class communitieses in east nashville banded together after a national disaster, that and more as real money's look at america's middle class - rebuilding the dream - continues. keep it here. the greatest power of anyone anybody in our society >> lawyers are entrusted to seek the truth... >> i did't shoot anybody, i don't have anything to do with nothin' >> but some don't play by the rules >> the way the courts have treated him, made me sick >> and it's society that pays the price >> prosecutors have unique power to take away your personal liberties >> i just want jus
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. >> philadelphia has seen a shocking decline in its middle class, dropping 42%. it lost 4 in 10 of middle class adults, driving factors were the loss of the city's manufacturing base, high crime and a poor public school system. there's good news. a pew report she is philadelphia's middle class is stabilizing. it's a different middle class than it was in the 19 '70s. less blue-colour folk and more professionals. for a look i went to the streets
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of south philadelphia, a traditionally blue collar italian-american neighbourhood. >> philadelphia is a city beloved for reasons as diverse as the people who live here. celebrated for the cheese steaks, rich history and many, many a rocky movie. here in south philadelphia lies a gem of a restaurant called victor cafe. [ singing ] it's as rich in history as the city itself, established in 1918 by greg de-stephino's grandfather. it is as philly as it gets. as a matter of fact part of the last rocky movie was filmed here. >> tell me what you loved about philly. >> i love the smallness of it, where you don't get lost, when something great happens, like if a sporting team wins, it's a
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celebration. we are an underdog city, we fight for respectability. we have a lot of great things here. describe what someone in philly, who is middle class, feels like to you? >> i mean, what is middle class. it's families that are working hard, struggling to - you know, make the payments, getting their kids into a good school. >> it's a middle class struggle common through the u.s. philadelphia's story has a twist. they have lost a quarter of its population, almost 400,000 people, and 43% of that population loss was the middle class. nationwide the middle class shrunk since 1970 from 60% of the population to 51. philadelphia's middle class shrunk more than the rest of the country to 42%. >> larry wrote a comprehensive report for pew charitable trust
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on the combine. philadelphia trust. >> a report shows that even though there has been a huge decline, if you look back from 2000 on, it's flat. it seems to have stabilized. >> the middle class is a reflection of a city's economic health. it fuels the economy like here at the philadelphia italian market for the last 100 years. it uses and pays for a city service, and serves as a stepping spoken for those that want to climb the economic ladder. philadelphia's middle class carries a larger burden than other cities. taxes support one of the largest groups of low income residents in the country. second to detroit. not only that. philadelphia has fewer rich residents, 9% of the population to offset the burden. this is stretching philly's middle class, causing higher taxes and limiting how much
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money the city can spend on police, spire, and updating an -- fire and updating an ageing infrastructure. philadelphia middle class may have hollowed, but there's a solid, albeit smaller base in a few parts of the city. this is one of those neighbourhoods, traditionally blue-collared italian-american, it's in the midst of a transformation as a new middle class of young professionals move in. they could be the transformation of a new middle class. brian howard bought a house here in 2009. you could call him the case of the new middle class. >> how does this feel to you as part of a city that has seen decades of hollowing out of the middle class is this does this feel like a good middle class
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neighbourhood? >> i like it. there's a lot of newer faces on my block, but faces that have been there for decades, people born on the block and still live there. it's a tentative piece between the two faces of the middle class. young professionals have been buying up property and bringing with it many changes. byob restaurants, hipsters and higher home prices. >> what do they think of guys like you? >> we get along. there was a feeling each other out period, the first winter we were here, i didn't shovel my block right away. i got side-long looks. >> the side-long looks are from a middle class that is historically been blue colour. mostly manufacturing and mid-level office jobs. that's changed. in 1970 philadelphia's workforce was roughly equal parts blue-colour jobs and white-collar - like finance and
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real estate. in the last 40 years manufacturing jobs plummeted to 10% of the workforce while white collar jobs doubled to 53%. >> people with a long-term investment in the neighbourhood could be priced out snooment brian took me on a walk of the neighbourhood to show me how it changed. >> old school barber shop. mexican. >> what else do we have? >> fountain quarter, a craft beer bar and the cigar shop. >> the oldest cigar shop in south philly. >> yes. >> does it work. >> get this sign here, will you? make sure you get that one. >> we got it. >> all right. >> clearly he doesn't mind the new filly. the guy yelling is a regular at the cigar shop, or antony. he lived here his life. you could call him the face of the old middle class. so now you have a bunch. different people moving, young professionals moving in.
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>> yes. >> does that keep the neighbourhood solid? >> yes, they kept the neighbourhood solid. it's changed, because their aspect is a little different. >> because of their age. economic challenges are one thing, a natural disaster is another. the middle class community in east nashville faced both problems but came out stronger than before, i'll show you how. a home for the family is a pillar of middle-class dreams, i'll show you where to go in america to put an affordable roof over your head.
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a community banding together to reclaim their dream, and in the progress they have revitalized an historic district on the edge of extinction, mary snow has the story. >> reporter: it's a tourist mecca, the home of a prime-time series. >> we have made our headquarters is here, bridgestone's is here. >> reporter: this year nashville is among the top 10 cities for jobs, with 9.7% growth in 10 years. while the big employers get the headlines, across the river in east nashville a small business bomb is -- boom is on the way. >> i moved and east nashville seemed a good community. >> reporter: once a shabby
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distribute overrun with empty store fronts, today it's the place to be for hip restaurants and night life. the turn around started in 1998 when an f3 tornado ripped through the neighbourhood, demolishing homes and business. >> a lot more investment came in, through insurance. a lot more city awareness and police presence. once the villages started it gave people a place to rally and kind of create community. . >> opened in 2001, this art gallery was one of the first businesses to draw other back. >> on the first night we opened the gallery, about 1,000 people came. it was everybody's friends, and neighbours walking by came in. they were so excited. >> their annual festival
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followed, an event drawing thousands. the mcfadyen's launched a project to help others. they have eight tiny store fronts offering renewable leases much . rents are a bargain. >> they are encouraged to take risks. >> thanks to them i have given legitimacy to our brand and company. i can say you can purchase our oat meal across various locations, but you can come to our store. >> reporter: the mcfadyens nurtured 15 businesses. those that left moved to bigger spaces, and there's a line of mum and pops waiting to get in. that waiting list caught the eye of nashville property developers mark and patty sanders. >> after talking with brett he had a waiting list of people going in there.
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his are smaller units and we said let's go the next size up so they can go from brett's to our, and ours to the rest of the world. >> blocks from the idea hatchery, the shops on fatherland is home to 20 microbusinesses. the sanders put their success rate at about 60%. >> you have to have insurance, pay your bills on time. if we give advice, if they want it, if they don't, they don't have to take it. one year it's a learning experience forum. >> successful for a husband and wife shop. you have to do everything yourself. you're answering the emails. i'm making the deliveries. it's exhausting, but there's a lot of rewards. >> for the sanders and the mcfad yarnings the rewards are clear - supporting small business means supporting the neighbours in east nashville and across the
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country. >> when it gets down to it, the middle class, and i mean mum and pop, we are the backdown of this country, and i think we need a bit of support for that. in the end it's the small businesses, the neighbourhood and the people coming together that are what makes a country work. the entrepreneurial spirit is a major force in the nashville economy. according to the mayor's office 23% of businesses in nashville are sole prop requirementorship -- proprietorship, 5% higher than the national offeringful mobile homes are hot for investors, we tell you why. owning a home is part of the american dream. i tell you where to go in america to get the best bang for your housing bucks. american people. >> tracking every move. >> the nsa's actually doing this
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for the middle class finding an affordable home is harder to do. the share of affordable homes tightened. this is a report put out. in san francisco america's most expensive area, 14% of the homes are in reach of the middle income, and we adjusted middle income, so only 14% are available. a year ago it was 20%. half the houses in denver are available, down from 67% a year ago. and atlanta it's 72% within reach of the middle class. that is not bad, but it's down from 779% a year ago. predictably the most affordable markets for the american middle class are concentrated in the south and midwest. when we say a share of the market is affordable or within reach of the middle class, the monthly payments on a home are no more than 31% of the metro
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area's median household income. metro area in ohio, from abbing rein to tolleo - all have markets in which 81 to 86% of the homes are priced within reach of local area middle income buyers. this area, sarl r these are -- south carolina are great place ifs you are a middle income buyer. these are others, 80% more with properties within reach of middle income. south carolina, columbia, little rock arkansas. 88 and 83% within reach, and the least affordable market for america's middle class are consep traited on the coast, new york and california, with seven of the tightest markets for the middle class. los angeles, 31%, san diego 42,
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new york city, 28% of homes are within reach of local middle income buyers. fairfield connecticut has 38%, all the way out in honolulu which is not south of texas, only 47% are within reach. i spoke to jed, a chief economist for trulia that put the research together and he says affordability is worsening because prices are rising faster than income. >> income is sluggish. mortgage rates have moved up. last year they hit a low in the low 3s. now we are in the low 4s. rates have come down a bit offer the past six month, but they are up from the historic low from earlier last year. higher prices and rates together. that affordability is getting worse. it's harder for the middle class to buy a home. >> you calculate monthly
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payments and figure out that affordable is 31% less than the medium income in a given area. you are only comparing apples to apples, to the same income in that median rer area. >> that 31% is a guideline determining whether a borrower can afford the home they are looking at. income differs. in san francisco and san jose are higher nan in the south-west. even though incomes are higher on the coast, afford ability is worse. the differences in home prices are different to incomes. the higher incomes on the coast do in the make up for the big differences in home prices. >> those of us in new york city, san francisco, and l.a. have the short end of the stick. what are the implications of this.
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let's say the pattern continues, presses go up, and if they stablilize, what are the implications of having the mark, where the spread between the median price of a house and income are so great? >> the first thing is we see more representers in the least affordable markets. the ownership rate is lower, because people are priced out and are representing. they live in smaller units. the typical affordable unit might be less than 1,000 square feet. a home size affordable in temaze will be closer to -- texas will be closer to 2,000 feet. people double up. they are with room-mates or with their parents longer term. >> so you touched on something here. that is a household formation in economist speak of the the failure to get more household formation has implications across the economy. >> i love when you use economist speech.
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household formation is the change in the number of households. we don't want the number of houses to get too far ahead of house hl formation, because then you have a lot of vacant homes. what happened in the recession is young people moved back in with their parents or never left. we formed fewer new households during those years than normal. we didn't need as much new construction, so construction suffered as well. we are now to the point in the recovery where household formation is paying up. young people are going back to work. more will move out of their parents home, and that is creating demand, but it's on the rental side. young people will move out of the basements into a rental before becoming a first-time home knir. >> in manhattan, there's a lot of construction, a lot given there's not much place to build stuff. a lot of buildings are rental buildings, starting with rental, and the non-rental stock built
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around here is nowhere near affordable, doesn't come close to median income, it's all at the high end. it's a matter of supply and demand. obviously represent and home prices are high in a place like new york. the supply that is coming online doesn't fit the middle class. >> right now we are seeing a construction boom in pleases like new york, san francisco, boston. big cities that typically don't have a lot of new construction. most of this is big buildings, rentals. what affects affordability is construction over the long term. places like san francisco, new york and boston build little housing. they build less housing than most other markets in the country. when you look at where a lot of housing is built in parts of texas, the south - pretty much every place that builds a lot of housing is affordable. >> right. >> if you build enough housing to keep up with demand prices
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don't rise as fast. >> no one looks at new york and san francisco saying "these cities are doomed", but are they doomed to be the home of rich people? >> without more construction it's harder for the middle class to afford to live there. pleases are expensive if there's a strong demand or they are pleasant or they are places you find great jobs. and they are places of tight supply. strong demand and tight supply is the recipe or long-term affordability price, and that's what we see in san francisco, and new york. >> good to see you. thank you for joining us. chief economist at trulia. the numbers tell part of the story. half of all renters write checks to the landlord eating up 30% of the monthly income. that is what is considered affordable. we look at the effect it's having on the middle class much an increasing number of renters are priced out of neighbourhoods
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where they lived for generations. >> it's not just major cities like san francisco where rental rates are sky rocketing. prescott, hatties burg, college station texas are among 20 cities where represents are the least affordable in the country, placing them out of reach for the middle class. leafy park brooklyn is half hour drive from manhattan. it han considered a small -- had been considered a small neighbourhood refuge more affordable. >> we had one 3-bedroom and they are asking 4650. >> rents are rising to record levels. over the past year the median price of apartments in brook lib rose 30% to 2900. in 2009 in 800 square foot, two-bedroom, one bathroom apartment went for 2400. it's on the market today for 4100. >> i see a lot of times people
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come in, they have 250,000 a year salary. the people that grew up in the neighbourhood can't afford to live here. the middle class can't catch a break. smaller pay checks and stricter environment made home ownership difficult. as a result the need for rentals grew. as rents increased a growing number of middle class families can no longer afford a lease. >> new construction basically grouped to a halt. we didn't build new housing, so the supply has not caught up to demand. the second reason that there's upward pressure on rents is there's a big set of families that might have been home owners is that are looking for rental units and they turned to rental units because they can't get a mortgage and have been involved in a foreclosure. >> one of the more affluent areas is not the only place where stom middle class renters
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are priced out. desmond is the owner of this barber shop. >> increasing rent will cause a lot of people to be displaced. >> romeo moved to an apartment outside of the area. >> i appreciate the time and effort. >> because he can't afford the 2,000 a month represent for a 3-bedroom apartment. he's relocated his family to that 1500 apartment in east new york, an area he says sa dangerous. consistent gunshots in the neighbourhood. it's not the best neighbourhood, i must say. it's the trade off that you get. >> luxury rental buildings are cropping up throughout the neighbourhood. construction will begin on a 23 storey building close to the barber shop. >> i'm concerned about my business. i don't want a developer to come in and push us out. >> it's not just new construction on the rise, rental prices are increase gs because
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of an uptick in renovations. 65,000 repo vasion the landlord made to this apartment enabled him to raise the rent by 200,000 to a price of 4100. >> first and last months represent. >> is there a relief in sight for renters. >> as the supply picks up, vacancy rates increase a little bit, rents moderate. you may see the problem ease somewhat. although, if there isn't some fix to the mortgage finance market, you'll have a problem of folks in the rental market when they might be in the home ownership mark, which puts pressure on rents. >> rents which this man can bacial afford, if not for his wife making a smart move. >> i'm in a fortunate situation where i have a represent stabilized apartment left. they are going by the wayside. >> up next - going mobile, as in
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mobile homes. why the middle class investors and families are getting into trailer parks, and i tell you what they get out of them. stay with us. ,
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mobile homes and trailer parks for many people the words have association with low-income people living in cheap struckures in crime-ridden areas on the outskirts of town. the reality is more complicated. the lyings of warren buffet has been attracted to this area, wh opens one of the biggest manufacturers of mobile homes. and sam zel's company is the largest mobile homeland lord. middle class families prized out of the housing market are turning to the homes as an alternative. it is a trend attracting a new wave of mobile home park investors. here is david shuster how new capital is parked in the industry. >> when i moved out here, it was hard for me to tell people i lived in a trailer park or a mobile home community. >> heather lives in a mobile trail park, representing a 3-bed
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room unit for $675. >> it's more affordable for the family. and save for us and the kids. we have the money we need. >> trailers, mobile homes, manufactured houses, whatever you call them, are loaded with a stigma of low-class living. as middle class families find rent out of reach and americans struggle in the wake. recession, they are becoming the only affordable housing around. >> this is a life saver for people that want to live decent and can't afford high cost of living. >> 85-year-old carlos bryant and his wife represent another major growing segment of the estimated 18 mill knloerns living in mobile -- million americans who live in mobile homes, those that can afford their open homes at a fraction of price. >> the economy is tough. >> frank owns the holiday home
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community and 100 other parks across 16 states. >> you have a lot of people downsizing. 10,000 seniors are retiring and a lot of households with a good paid job at the factory, thinks like that. really all the different macrotrends are forcing people back into our business model. >> that business model is simple and lucrative. park owners charge a fee for using the land where the mobile home sits, $250 a month. tenants park their own houses on the land. like the cooley family, they can pay to rent a home for a couple of hundred more. >> looks good. i like the colours. >> rolf's parks have 85% occupancy, and bring in returns as high as 25%, generating more than 30 million in revenue. those numbers brought mcmansion sized interest to a cottage industry. >> as i say, i went from mobile
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phones to mobile homes. >> jefferson worked in silicon valley on cell phone technology before buying two mobile home marks pore three-quarter of a million. he has three under contract. including this one outside of kansas. >> one of the things that is attractive about the community is the homes are not more than 15 years old. >> like many. new wave of white collar investors seeking returns, he got a start at mobile home university, a bootcamp for owners run by rolf. >> mobile home parks are you nook in that they present an easy on-ramp for investors, and someone with a couple of thousands could get into the business by purchasing an individual mobile home, renovating it, and then selling it or representing it out over time. >> here is why mobile home parks offer a stable investment. tenants tend to stay put due to
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the high cost of moving the houses. a majority represent the land, so maintenance is low and supply is fixed. many places banned construction of parks thanks to unsavory reputations. the mobile home park industry is fragmented. itrun. those of us that have had other management experiences and that have access to capital can and are increasingly coming into the industry. >> critics say they prove it off of poverty, making a bet on the downward slide of middle class. rolf says he and owner are serving a need. >> we are not the ones having people losing the job making 40,000, and now making 14,000, or not the ones making health care costs go up, insurance go up. we are the solution, not the problem. let's dig deeper into the
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economics of mobile home parks. i spoke to a man that makes his livelihood. frank rolf brought a park over two decades ago. he and a partner run mm-hmm p fund, the 15th largest mobile park company in the company and mobile university, a one-stop shop to learn how to own a pork. i asked about the perception much. >> in the "20s and '30s it was a positive. back in the rocker fellas, all the wealthy americans had trailers behind the cars since there was not a good motel infrastructure. so a lot of cities opened free trailer parks to attract them to their town. >> they'd come in and spend money. >> absolutely. >> and live in their own homes. >> it was after the world wars, after the troops came home, that the government got involved in
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mobile homes and trailer parks. >> that's correct. the government was the largest single buyer of mobile homes in history, 500,000 unit during world war ii, using it through base housing and gi housing at colleges. >> the problem is after the understood for base howing and g i housing started to drop off, you now have too many mobile homes in the country. >> what you have, ali, you had prosperity start coming to america in the '50s. the service me found new careers, and moved on to a traditional single family. they had the reverse of what is happening. you had good times, and people moved on to bigger housing. >> how would you characterise mobile homes or trailer parks. where do they sit in the imagination of america, do they fit into the american dream? >> 20 years ago when i got in the business, it was just a night and day difference. here i am on your show, 20 years
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ago i couldn't have been on a high school radio show. the industry has not changed much. it's a perception changed enormously as america is getting more focussed on the fact that, you know, incomes are dropping, people need cheap places to live. >> what sort of income levels to mobile home parks, trailer parks, serve. you know obviously that it can be very low income . how high does it go. >> all the way up to million dollar homes, two parks in mallee bu. point doom in paradise cove on the beech. there's one on the market for 2 million. lot renders 1 to 2 million. pam anderson lived there. it's a full spectrum for minimum wage to movie stars. >> what qualifies those expensive homes as mobile homs. we are not up and moving them away, are we? >> they are considered mobile
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homes because they come out on a chassis and wheels. they are considered like a personnel property. >> there appears to be not too many bubble homes built. >> that's correct, 10 per year. >> why is that? >> hostility of city governments against what they perceive mobile parks to be. some of them acknowledge they need affordable housing in the town, but the sentiment of the community is "not near us", so politically it's not a good topic. >> we see them in places where there's a boom. in north dakota there has been an expansion of mobile homes where they can't build housing fast enough to keep up with the fracking boom. >> correct. those are special segments, man camps. >> let's talk about the kind of people looking to get into this business, who you see at mole home university -- mobile home
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university. >> we see doctor, dentist, lawyers, high worth individuals, and those trying to build a nesting in real state. >> what an interesting story. thank you for joining us. frank ralph, a co-owner of mm-hmm p funds. >> something that can cost more than the rent - childcare. how some are squeezed and meeting the challenge.
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>> it's a chilling and draconian sentence... it simply cannot stand. >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live.
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the list of finance burdens squeezing american middle-class family is squeezing including represent, health insurance, and another - childcare. in 31 states and washington d.c., annual child care costs more than a year of in-state public college finding quality affordable childcare is not just a prob for working class parents. >> reporter: for working parents taking care of their 9-month old baby and getting their 4-year-old up and ready can be nothing short of a miracle. >> no, no, not yet. >> juggling the cost of child care for their two daughters is the real daily struggle for the new york family. >> what book to do you want to bring to school? >> a third wepd to childcare, a third to rent. i go to the grocery store i'm
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thinking "i'll have to check and make sure i haven't overdrawn." carla is a professor of anthropolo anthropology. todd runs a music nonprofit and teaches part-time at columbia university. despite a combined income of $110,000 a year, they can barely pay for des's preschool fees and one day of baby-sitting a week. that means trading off days working from home, and with an infapt to take care of, getting anything done is tough. >> there's something systematically wrong when an associate professor with a partner making some sally can't - truly can't make ends meet. >> it's a middle class thing. we fall in between. >> chipd d childcare is -- childcare is typically the highest household expense, exceeded only on the west coast by housing. >> annette is an executive
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director for childcare aware. a nonprofit studying the cost of childcare. they show that their findings are different it state to state. massachusetts is expensive. mississippi is the lowest. but nationwide childcare costs have been growing at a rate 5-times that of family incomes. >> we are seeing a time in united states of america, where people are having babies off an economic cliff. >> christen co-founded mum's rising, a grass-roots organization. some cost increases can be explained by rising expenses. the larger issue is a matter of supply. day cares in 19 states had waiting lists or turned away families, unable to keep up with a rapidly rising demand of the
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labour force. >> 50% are women for the first time in history, three-quarters of mums are in the labour force. at the same time nearly 50% of families are relying on mum's winter games as a primary bread winner. >> the economic squeeze of child care forced mums like jessica, a washington d.c. mother of three out of full-time workism. >> working for the environmental lawform was one of the most satisfying jobs i ever had much it didn't make sense for me to continue there fm will ip. >> christy gave up a litigation assistant job when her second son was born. she couldn't afford to give up a second income altogether. she picked up freelance consulting work to keep the household budget afloat. for parents with full-time jobs, professional sacrifice is a constant. bellamy landed a coveted
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teaching fellowship for the fall, but worries she and todd will not be able to afford the extra days of baby-sitting they need for the position. their only hope rests on getting salary raises in the coming months. if we can't get the salary increases we need for next year, what will we do. what is the plan b? there is no plan b. >> there's only rehabilitation. >> we have a tiny bit in the savings that, will go away, which will not be enough, na is that. studies showed the expense and difficulty of finding child care hurts the overall economy. according to merge's 'em, a non- -- america's edge, a none-profit, employee ab senteeism related to childcare costs $3 billion every year. we'll have many more stories, keep watches as we follow the
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lives of the williams, the sabino, and the bollens. that is our show for today, i'm ali velshi. thank you for watching. . >> hello everybody, welcome to jam -- al jazeera america. i'm david shuster. john seigenthaler has the night off. ahead. protesters are hoping to block more - there's a protest. and where the stand off is headed. >> brokener borders, broken dreams, we look at the causes of the immigration crisis and what can be done. it's an